Aave Reopens Deposits and Borrowing Across Its V3 and V4 Markets

Aave has reopened new deposits and borrowing in every V3 and V4 lending market, lifting a precautionary pause introduced Friday amid a security event involving Binance.

During the pause, new deposits and loans were disabled in affected markets. Aave said users could still withdraw funds and repay existing loans throughout the freeze. The protocol also said its smart contracts were unaffected and user positions remained fully collateralized.

Some borrowing limits remain at the asset level. Aave kept loan-to-value ratios at 0% for nine assets: USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP. Those assets cannot be used as collateral for new borrowing, even as the broader markets reopen.

The changes separate market access from collateral eligibility: deposits and borrowing have resumed across V3 and V4, while restrictions on those nine assets remain in place.